Ellie Mae (ELLI) reported third quarter 2014 revenue of $42.8 million, compared to $33 million in the third quarter 2013.
Additionally, the Pleasanton, California-based company’s net income came in at $4.1 million compared to $3.4 million in Q3 2013.
This beat analysts earnings per share exceptions by $0.03, according to Briefing.com.
“Revenue grew 30% over last year’s third quarter to a record $42.8 million, despite a 27% decline in industry mortgage origination volume, and our active user base crossed the 100,000 mark for the first time,” said Sig Anderman, CEO of Ellie Mae.
“These results validate the strength of our flagship Encompass Mortgage Management SaaS offering, as more and more lenders embrace our all-in-one solution to meet their ever-increasing needs for loan quality, regulatory compliance and operating efficiency,” Anderman said.
“We also bolstered our compliance capabilities through the acquisition of AllRegs. We believe this acquisition positions Ellie Mae as the leading source of not only mortgage management technology, but also of investor guidelines and a full spectrum of compliance resources and education,” Anderman stated.
For Encompass, the total number of active users increased 11% year over year to 104,146, while the total number of active users of the SaaS version of Encompass increased 29% year-over-year to 78,847, or 76% of all active Encompass users.
In addition, total SaaS Encompass revenue increased 27% year over year to $26.5 million, representing 62% of total revenue for the quarter.
Looking ahead, Ellie Mae said the October composite forecast reflects virtually no change in 2014 origination volume from the forecast of approximately $1.1 trillion as of July 31, 2014 when it issued its third-quarter guidance.
The company expects a fourth quarter 2014 revenue in the range of $41 million to $42 million.
“However, because of expenses related to the acquisition and integration of AllRegs, including the assumption of all of the AllRegs operating costs, the amortization related to the accounting treatment of the acquisition, and the minimal AllRegs revenue we are able to recognize due to GAAP accounting rules, we expect to have a net loss in the range of $(0.5) million to breakeven, or $(0.02) to $0.00 per basic share,” Ellie Mae said in its earnings.